Answer :
If the future value is $ 8000 for 15 years at 9% the total value will be $29,962,545
What is Future value?
Future value (FV) is the value of an asset now based on an anticipated rate of increase in the future. Investors and financial planners use the future value to project how much an investment made now will be worth in the future.
Investors can choose wisely based on their anticipated demands when they have knowledge of the future value. External economic forces, such as inflation, can hurt the asset's future worth by depreciating it, though.
The FV of an asset can be determined in one of two ways: either using simple interest or using compound interest.
pv = 8000
t= 15,
r= 9% = 0.009
n= compound semiannually = 2
So,
Future value = pv [tex]( 1+\frac{r}{n} )^{nt}[/tex]
[tex]8000 [ 1+\frac{0.09}{2}] ^{2(15)} ][/tex]
[tex]= 8000 ( 1+0.04)^{ 30}[/tex]
So Future value is $29,962.545
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